Bill Text: HI SB4 | 2012 | Regular Session | Amended

Hawaii Senate Bill 4 (Prior Session Legislation)

Bill Title: Gambling; Lottery; Sweepstakes

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB4 Detail]

Download: Hawaii-2012-SB4-Amended.html

STAND. COM. REP. NO. 473

Honolulu, Hawaii

RE: S.B. No. 4

S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

Your Committee on Judiciary and Labor, to which was referred S.B. No. 4 entitled:

"A BILL FOR AN ACT RELATING TO GAMBLING,"

begs leave to report as follows:

The purpose and intent of this measure is to close a loophole in the gambling laws that allows gaming machines in restaurants and other establishments by:

(1) Eliminating free play, beginning on January 1, 2013, as a defense to the prohibitions on gambling in part III of chapter 712, Hawaii Revised Statutes; and

(2) Amending the definition of "advancing gambling activity" to clarify that offering free play as an alternative to play via purchase does not render legal conduct that would otherwise constitute the illegal advancement of gambling under part III of chapter 712, Hawaii Revised Statutes.

Your Committee received testimony in support of this measure from the Hawai�i Coalition Against Legalized Gambling and Hawaii Family Forum.

Your Committee finds that this measure is intended to address vending machines that dispense "sweepstakes" game cards, which have been operating for several years in a large number of bars, restaurants, convenience stores, and other retail establishments. These machines are intentionally manufactured to have payoffs similar to slot machines. These devices ostensibly sell high‑priced phone cards, but their true purpose appears to be to let people play video games for a chance to win cash or prizes. However, because the machines offer an alternative method of entry or "no purchase necessary to play" option, there is some question as to whether what is essentially a slot machine can legally be played in our State. Your Committee believes that this measure will close this loophole in Hawaii's gambling laws.

Your Committee has amended this measure by:

(1) Adding definitions for "free play" and "pool" for clarification purposes;

(2) Adding a savings clause;

(3) Inserting an effective date of July 1, 2050, to allow for further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 4, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 4, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair